Edition:
United Kingdom

Medha Singh

Inditex rally pushes European shares up ahead of UK election, tariff deadline

11 Dec 2019

European shares made small moves on Wednesday in anticipation of pivotal global events such as a U.S.-China tariff deadline, UK general election and some central bank meetings, but a 5.2% rally in Zara owner Inditex ensured a higher close.

Possible tariff delay lifts European shares off session lows

10 Dec 2019

European shares fell for a second day running on Tuesday, but a 6% jump in drugmaker Sanofi and a report that U.S. and Chinese officials are planning to delay tariffs set to kick in on Dec. 15 helped them end off session lows.

US STOCKS-Wall St rises on possible tariff delay hopes

10 Dec 2019

* Indexes up: Dow 0.11%, S&P 500 0.17%, Nasdaq 0.32% (Updates to open)

US STOCKS-Wall St set to open higher on report of possible tariff delay

10 Dec 2019

* Futures up: Dow 0.08%, S&P 0.09%, Nasdaq 0.18% (Adds comments, recasts throughout)

EMERGING MARKETS-Latam FX hit by strong dollar; growing unrest knocks down Chilean, Colombian peso

27 Nov 2019

* Chilean peso at new low as violence resurges * Brazil's real falls for fourth straight day * Dollar lifted by better-than-expected U.S. data (Updates prices; adds quote, details) By Medha Singh Nov 27 Most Latin American currencies took a hit on Wednesday, as the dollar firmed on upbeat U.S. economic data, while currencies in Chile and Colombia dropped further on growing anti-government protests in those countries. The Colombian peso declined 0.8%, down for the fourth day, as a week of demonstrations against rumored government economic plans, corruption and police violence rolled on. Colombian stocks shed 1.4% as the unrest in the country dimmed risk appetite. Chile's peso closed at a new low as violence resurged in the South American nation following weeks of protests over inequality and inadequate social services. The Brazilian central bank sold dollars on the spot currency market for the third time in three days as the real continued to weaken, threatening to hit another record low. The currency, which has been battered this month also thanks to a failed oil auction, fell as much as 1.2% to a record low of 4.770 on Tuesday. "​What's interesting is that inflation (in Brazil) has in fact remained benign as the real has depreciated (but) that's not likely to last," said Peter Cecchini, global chief market strategist at Cantor Fitzgerald. Meanwhile, stocks in the region were mostly higher, with those in Brazil Bovespa and Mexico posting modest gains and Argentina's Merval up more than 5% due to portfolio recomposition after recent losses. Brazilian equities are expected to outperform their Latin America peers next year, due to record-low interest rates and a pending lineup of market-friendly economic reforms, according to a Reuters poll. Traders also signaled fairly thin volumes in a quiet session ahead of the U.S. Thanksgiving holiday on Thursday. Key Latin American stock indexes and currencies at 1903 GMT: Stock indexes daily % Latest change MSCI Emerging Markets 1052.74 0.47 MSCI LatAm 2637.20 0.46 Brazil Bovespa 107556.92 0.46 Mexico IPC 42998.53 0.34 Chile IPSA 4597.15 0.75 Argentina MerVal 33860.81 5.442 Colombia IGBC 1573.78 -1.43 Currencies daily % change Latest Brazil real 4.2534 -0.35 Mexico peso 19.5460 -0.16 Chile peso 819.75 -2.74 Colombia peso 3503 -0.83 Peru sol 3.384 0.00 Argentina peso (interbank) 59.7700 0.33 (Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru Editing by Alistair Bell)

European shares continue climb on U.S.-China trade optimism

27 Nov 2019

European stocks rose for the fourth session on Thursday, as telecom stocks rose after a report that Deutsche Telekom is examining a possible merger with France's Orange, while hopes for an end to the U.S.-China trade dispute also helped the mood.

EMERGING MARKETS-Brazilian c.bank intervenes as real slumps; Colombian peso drops on tax reform

26 Nov 2019

* Real cuts losses after two central bank interventions * Colombia announces changes in tax reform * Latin American stocks eye worst day in three months (Updates prices; adds details, news items) By Medha Singh and Uday Sampath Kumar Nov 26 Brazil's real slipped in volatile trading on Tuesday to a fresh record low, with the government intervening twice to stymie a slump in the currency, while a change in Colombia's tax reform raised worries of higher fiscal deficit. The Brazilian central bank said it is selling dollars in the spot currency market for the second time, announcing an auction of another minimum lot $1 million after the real slumped as much as 1.2% to 4.2770 against the dollar. While the currency hit a record low last week after foreign bidders effectively failed to show up at a "mega" oil auction this month, a fresh wave of selling on Tuesday followed comments from Economy Minister Paulo Guedes that he was not worried about the currency's weakness. "The markets understood that as a sign that further depreciation is not considered a threat by the government," said Wilson Ferrarezi, an economist at TS Lombard in Sao Paulo. "The current level near 4.30 does not seem to be justified when we look at the fundamentals." In Colombia, the peso shed 1.1% as President Ivan Duque announced changes to his unpopular tax reform proposal which would cost the government some 3.2 trillion pesos ($931 million). Duque said the proposal will be modified to return value added tax (VAT) to the poorest 20% of Colombians and lower contributions to healthcare by minimum wage pensioners. "The VAT rebate poses a risk to Colombia's fiscal stance," Christian Lawrence, Senior Market Strategist, LatAm FX at Rabobank in New York said. "Any sort of major announcement like this is going to spark some worries, particularly when it seemed to come out of the blue." Still, Colombian unions and student groups planned a seventh day of anti-government protest on Wednesday. Mexico's peso continued to weaken after revised data on Monday showed Latin America's second largest economy was in a technical recession in the first half of the year. The government said on Tuesday it would spend 859 billion pesos ($44.3 billion) in the first phase of an ambitious infrastructure plan underwritten by the private sector, to prop up the stagnating economy. The broader sentiment was also dented by caution around the ongoing U.S.-China trade talks. The region's stocks lost about 2%, set for their steepest fall in three months. ($1 = 19.3710 Mexican pesos) ($1 = 3,433.94 Colombian pesos) Key Latin American stock indexes and currencies at 1933 GMT: Stock indexes daily % Latest change MSCI Emerging Markets 1047.80 -0.54 MSCI LatAm 2632.63 -2.05 Brazil Bovespa 106963.12 -1.35 Mexico IPC 42996.52 -1.24 Chile IPSA 4563.00 -1.91 Argentina MerVal 32101.30 -4.16 Colombia IGBC 1588.00 -0.8 Currencies daily % change Latest Brazil real 4.2460 -0.75 Mexico peso 19.5640 -0.64 Chile peso 797.8 -0.81 Colombia peso 3474.85 -1.23 Peru sol 3.384 0.06 Argentina peso (interbank) 59.9000 -0.31 (Reporting by Medha Singh and Uday Sampath in Bengaluru; Editing by Richard Chang)

Positive trade sentiment nudges European stocks higher

26 Nov 2019

European stocks rose for the third straight session on Tuesday, lifted by hopes that the ongoing negotiations between United States and China would yield a trade truce.

EMERGING MARKETS-Brazil's real down on wider current account gap; Mexico's peso slips on weak GDP data

25 Nov 2019

* Brazil's real slips after current account gap widens * Mexican peso eases after weak GDP data * Chilean peso breaks 5-day losing streak * U.S.-China trade rhetoric improves (Updates prices; adds quotes) By Medha Singh Nov 25 Brazil's real weakened on Monday after data showed the current account deficit in Latin America's largest economy widened in October, while a report showing the Mexican economy was in a mild recession in the first half of 2019 pressured the peso. The slipped against a firmer dollar as central bank data indicated the current account deficit widened more than expected, to $7.9 billion as the trade surplus shrank. "The number was a little bit of a surprise," said Luiz Ribeiro, head of Latin American equities at DWS Group. "But the current account deficit is growing not because of higher imports but because of lower exports, and one of the main reasons for that is lower exports to Argentina." The currency, which hit a record low against the dollar last week, is down about 8% this year as the economy sluggishly recovers from a deep recession and struggles to cope with a mounting fiscal deficit. The Mexican peso eased as revised data from the national statistics agency showed the economy entered a slight recession in the first two quarter of this year. "Mexico is in a really delayed stage of the economic cycle, like the United States, so it's very difficult to expect an acceleration in growth," Ribeiro said. MSCI's index of Latin American FX fell against a firmer dollar, which was lifted by promising news on the Sino-U.S. trade front. The Chilean peso, which advanced about 1% as the currency of the world's largest copper producer benefited from higher copper prices, bucked the trend. In Colombia, where anti-government protests that have largely been peaceful entered their fourth day, the country's currency was down 0.3% while stocks lost nearly 1%. "We don't think it will affect growth the same way it has in Chile, where the GDP forecast is reduced," said Ribeiro. Stocks in the region shed 0.8%, with equities in Brazil down 0.1% while those in Chile fell 1.7%. Key Latin American stock indexes and currencies at 1918 GMT: Stock indexes daily % Latest change MSCI Emerging Markets 1053.96 0.52 MSCI LatAm 2690.59 -0.8 Brazil Bovespa 108506.10 -0.17 Mexico IPC 43590.66 0.16 Chile IPSA 4649.70 -1.7 Argentina MerVal 33706.66 0.351 Colombia IGBC 1597.79 -0.99 Currencies daily % change Latest Brazil real 4.2127 -0.49 Mexico peso 19.4386 -0.34 Chile peso 791.3 0.94 Colombia peso 3432.25 -0.28 Peru sol 3.386 0.06 Argentina peso (interbank) 59.7100 0.12 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Steve Orlofsky)

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